What is a 'Mission Statement'

A mission statement is a short sentence or paragraph used by a company to explain, in simple and concise terms, its purposes for being. These statements serve a dual purpose by helping employees to remain focused on the tasks at hand, as well as encouraging them to find innovative ways of moving towards an increasingly productive achievement of company goals. It is not uncommon for the largest companies to spend many years and millions of dollars developing and refining their mission statement, with many of these mission statements eventually becoming household phrases.

BREAKING DOWN 'Mission Statement'

Mission statements aren't just for Fortune 500 companies. Many of the most successful individuals, professionals and investors have taken the time to craft a personal mission statement. These personal mission statements often incorporate the financial, professional, spiritual and relational aspects of life. This in turn helps the individual to keep a healthy work/life balance that increases their personal achievement in all of these areas.

RELATED TERMS
  1. Enduring Purpose

    A public statement regarding a company's core principles, defining ...
  2. Financial Statement Analysis

    The process of reviewing and evaluating a company's financial ...
  3. Comparative Statement

    A statement which compares financial data from different periods ...
  4. Income Statement

    A financial statement that measures a company's financial performance ...
  5. Mission Critical

    An activity, device, service or system whose failure or disruption ...
  6. Bank Statement

    A record, usually sent to the account holder once per month, ...
Related Articles
  1. Investing

    What are Financial Statements?

    Financial statements are a picture of a company’s financial health for a given period of time at a given point in time. The statements provide a collection of data about a company’s financial ...
  2. Investing

    12 Things You Need To Know About Financial Statements

    Discover how to keep score of companies to increase your chances of choosing a winner.
  3. Investing

    Why Real Estate Investors Need a Business Plan

    And how to write one that will serve as a road map to give you direction and motivate you to stay on track.
  4. Investing

    What Is The Difference Between A Cash Flow Statement And An Income Statement?

    A firm’s cash flow statement measures the sources and uses of its cash. The income statement shows how it is financially performing.
  5. Investing

    Explaining Financial Statement Analysis

    Financial statement analysis is the process of reviewing a company’s statements to gain an understanding of its financial health.
  6. Investing

    Navigating Government And Nonprofit Financial Statements

    Learn how to trace where your tax dollars and charitable donations are going.
  7. Investing

    Evaluating A Company's Management

    Financial statements don't tell you everything about a company's health. Investigate the management behind the numbers!
  8. Investing

    Sneaky Subsidiary Tricks Can Cloud Financials

    Use consolidated financial statements to uncover a parent company's true performance.
  9. Investing

    Explaining the Common Size Income Statement

    A common size income statement expresses each account as a percentage of net sales.
  10. Investing

    What are Financial Statement Assertions?

    Understand financial statement assertions and what they mean in accounting. For investors, it is important that assertions be accurate.
RELATED FAQS
  1. How has Google's operations strayed from its original mission statement?

    Learn about Google's current mission statement and decide if Google is practicing what it preaches. Read Answer >>
  2. What is Apple's current mission statement and how does it differ from Steve Job's ...

    Find out how Apple's mission statement has changed from Steve Jobs' original mission statement. Jobs saw Apple products as ... Read Answer >>
  3. How are the three major financial statements related to each other?

    Learn why investors analyze a company's financial statements, and how the income statement, balance sheet and cash flow statement ... Read Answer >>
  4. What is the difference between a compiled and a certified financial statement?

    All publicly-traded companies are required to provide financial statements, including a balance sheet, cash flow statement ... Read Answer >>
  5. Which financial accounting statement contains information on a company's net sales?

    Find out which accounting statement contains information on a company's net sales as well as other key statements analysts ... Read Answer >>
  6. What's the difference between an income statement and a balance sheet approach?

    Understand more about the principle purposes and primary differences between a company's income statement and its balance ... Read Answer >>
Hot Definitions
  1. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  2. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  3. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  4. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  5. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  6. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
Trading Center